Question
In: Economics
1. The Profit-maximizing Level of output for a perfectly competitive firm in the short run occurs...
1.
The Profit-maximizing Level of output for a perfectly competitive
firm in the short run occurs where:
a. marginal revenue equals price
B. Total revenue equals total cost
C.marginal cost equals price
D. Average revenue equals average total cost
2. Marginal revenue is a firms:
A. Ratio of the change in total revenue to change in
output.
B. Profit per unit times the number of units sold
C. Ratio of average revenue to total revenue
D. Increase in profit when it sells an additional unit of
output
3. In the short run, if P>ATC, a perfectly competitive
firm:
A. Produces output and earns zero economic profit
B. Does not produce output and earns economic profit
C. Produces output and incurs an economic loss
D. Produces output and an economic profit
4. For a perfectly competitive firm in the short run if the
firm produces the quantity at which:
A. P<ATC, then the firm breaks even
B. P>ATC, then the firm is profitable
C. P<ATC, then the firm is profitable
D. P=ATC, then the firm incurs a loss
5. Consider a perfectly competitive firm in the short run.
Assume that it is sustaining a Canamak losses but continues to
produce. At the profit maximizing (loss- minimizing) Output , All
of these statements are correct EXCEPT:
A. Marginal cost is less than average total cost
B. Marginal cost is less than average variable cost
C. Price is equal to marginal cost
D. Marginal cost is equal to marginal revenue
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
1. Suppose, a perfectly competitive firm is trying to determine its profit-maximizing level of output. The...
1. Suppose, a perfectly competitive firm is trying to determine
its profit-maximizing level of output. The product sells for $260
per unit. The total cost function is given by C = 1000 + 80Q – 6Q2
+ .2Q3. Find the equilibrium price and maximum profits. Also, find
the shutdown point for this firm.
2. You are the manager of a monopolistically competitive firm,
and your demand and Cost functions are given by Q = 20 – 2P and C =...
A profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed...
A profit-maximizing firm in a perfectly competitive market
operates in the short run with total fixed costs of D
$2,250 and total variable costs (TVC) as is below. The
firm can only produce integer amounts of output (Q):
Q (Output)
TVC (Total Variable Cost
0
0.00
1
2,500
2
4,000
3
5,000
4
6,200
5
7,600
6
9,360
7
11,500
8
13,860
9
16,450
10
19,200
11
22,310
3a. How much output should the firm
produce if it can sell...
A profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed...
A profit-maximizing firm in a perfectly competitive market
operates in the short run with total fixed costs of
$6,500.00 and total variable costs (TVC) as is below. The
firm can only produce integer amounts of output (Q)
Q
TVC
0
0.00
1
8,000.00
2
15,000.00
3
20,000.00
4
23,000.00
5
25,000.00
6
29,000.00
7
33,500.00
8
39,000.00
9
46,000.00
10
53,500.00
11
61,200.00
12
72,000.00
_______3. (2.5 pts.) How much output should the firm produce if
it can sell all...
1. Suppose a perfectly competitive firm in the short-run is currently producing an output level of...
1. Suppose a perfectly competitive firm in the short-run is
currently producing an output level of 50,000 units, charging a
price per unit of $4. The firm incurs variable costs of $280,000 in
producing this level of output. It also has fixed costs
of $60,000.
a) Calculate the economic profit (or loss) from the firm
producing and selling these 50,000 units of output.
b) Calculate the economic profit (or loss) from the
firm shutting down and producing zero units.
c) Given the correct...
Suppose a perfectly competitive firm in the short-run is currently producing an output level of 50,000...
Suppose a perfectly competitive firm in the short-run is
currently producing an output level of 50,000 units, charging a
price per unit of $4. The firm incurs variable costs of $280,000 in
producing this level of output. It also has fixed costs of
$60,000.
a) Calculate the economic profit (or loss) from the firm
producing and selling these 50,000 units of output. Show all your
work. (2 points)
b) Calculate the economic profit (or loss) from the firm
shutting down...
At what level of output is profit maximized for a perfectly competitive firm? Why will the...
At what level of output is profit maximized for a perfectly
competitive firm? Why will the firm not produce this level of
output? Explain
Describe the profit maximizing position of a perfectly competitive firm in the long-run. Use a diagram...
Describe the profit maximizing position of a perfectly
competitive firm in the long-run. Use a diagram to motivate your
answer.
How do a competitive firm, monopolist and monopolistically competitive firm determine its profit-maximizing level of output...
How do a competitive firm, monopolist and monopolistically
competitive firm determine its profit-maximizing level of output
and price? Explain your answer.
At the current level of output, a profit-maximizing firm in a competitive market earns average revenue...
At the current level of output, a profit-maximizing firm in a
competitive market earns average revenue of $25, has an average
total cost of $22 and an average variable cost of $17. If the
firm's marginal cost curve is equal to its average total cost curve
at an output level of 20,000 units, then the firm earns profit of
$60,000 at its current level of output.
True
False
The short-run supply for a firm in a perfectly competitive
market will...
Given a perfectly competitive market structure at the profit-maximizing output level, a firm’s total fixed cost...
Given a perfectly competitive market structure at the
profit-maximizing output level, a firm’s total fixed cost is $32,
total variable cost is $174, marginal revenue is $6.60, and the
quantity demanded is 38 units. Calculate the firm's profit at the
profit-maximizing output level. Show your work. Show your work.
(Show your work to earn credits. No Work, No Credit.)
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